Market Skimming Pricing Makes Sense Under All the Following Conditions

question 28

Multiple Choice

Market skimming pricing makes sense under all the following conditions, EXCEPT ________.

• A) if a sufficient number of buyers have a high current demand
• B) if the unit costs of producing a small volume are high enough to cancel the advantage of charging what the traffic will bear
• C) if the high initial price does not attract more competitors to the market
• D) if consumers are likely to delay buying the product until its price drops
• E) if the high price communicates the image of a superior product

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Definitions:

Organizational Hierarchy

A system in which members of an organization are ranked according to levels of authority and responsibility.

Company Newsletter

A regularly distributed publication by a business to keep its employees, customers, or stakeholders informed about news and policy.

Informal Grapevine

An unofficial channel of communication within an organization, spreading information quickly but sometimes inaccurately through word-of-mouth.

Workspace Design

Workspace design involves arranging physical space and environment to improve efficiency, productivity, and well-being in the workplace.